TORONTO, Nov. 30, 2017 /CNW/- Orefinders Resources Inc. ("Orefinders" or the "Company") (TSX.V: ORX) is pleased to announce that it has entered into agreements for a series of three acquisitions of contiguous properties from two individual landholders and from Premet Inc., a private company. All properties are in the Abitibi's Shining Tree district of Ontario. All of the patented leases and mining claims comprising these three acquisitions will be 100% owned by Orefinders and are adjacent to Tahoe Resources Inc.'s Juby Gold Project.
Orefinders is acquiring the following assets:
1. Premet Inc.'s assets include 100% ownership of:
- 7 proximate properties, including 5 former producing mines in the Minto Mine, Tyrenite Mine, Duggan Mine, Mann Mines, and the MacMurchy, Fawcett, and Corona claims
- Several of the properties host very high grade and/or long gold mineralization intercepts as demonstrated by drill results between 2010 and 2013, notably on the Minto Mine:
- 13.3 gpt Gold (11.0 gpt if cut to 31.1 gpt) over 82.5 metres in drill hole MC-09-01 (Creso Exploration news release August 9, 2010)
- 18.2 gpt Gold (7.9 gpt if cut to 31.1 gpt) over 65.7 metres and 4.61 gpt Gold (3.5 gpt if cut to 31.1 gpt) over 79.6 metres in drill hole MC-09-02 (Creso Exploration news release June 8, 2010)
- 1.01 gpt Gold over 192.0 metres, including 5.04 gpt Gold over 24.4 metres in drill hole MC-11-11 (Creso Exploration news release May 11, 2011)
- 1.15 gpt Gold over 280 metres, including 5.2 gpt Gold over 3.44 metres, 3.2 gpt Gold over 5.47 and 3.4 gpt Gold over 41 metres in drill hole MC-10-03b (Creso Exploration news release October 29, 2010)
- Duggan Mine's near-surface intersections include:
- 1.52 gpt Gold over 75.5 metres in drill hole D3-07 (Creso Exploration news release June 8, 2011)
- 2.20 gpt Gold over 34.50 metres including 40.0 gpt Gold over 1.0 metre in drill hole CD13-03 (Creso Exploration news release February 14, 2013).
- 1.5 gpt Gold over 80.9 metres, using metallic screen assay method, from CD13-03 (Creso Exploration news release March 13, 2013)
- The silver-cobalt Mann Mine includes:
- 181.2 gpt Silver over 28.75 metres (Creso Exploration news release December 14, 2011)
- Over 30,000 metres of historical drilling on properties listed above
- Historical Estimates on several properties (refer to historic estimates disclosure below):
- Minto: 225,000 tonnes @ 6.9 gpt Gold (MNDM: MDI41P10NW00006)
- Tyrenite: From 1939 to 1942 the mine produced 203,000 tonnes at a recovered grade of 5.04 gpt Gold. Historic resource of 472,000 tonnes @ 6.9 gpt Gold (MNDM: MDI41P11NE00013)
- Duggan: 1.01 million tonnes @ 2.40 gpt Gold (MNDM: MDI41P11NE00023)
- Corona: Production 22,000 tonnes @ 3.77 gpt Au (1939; MNDM : MDI41P11NE0002
- Substantial mining infrastructure including a mine shaft rehabilitated in the 1990's, a headframe, skip and hoist, a core shack with core, ramp, and 6 on-site buildings.
- The Premet total Land Package is 1,813 hectares on 14 patented leases and 37 mining claims all of which are accessible by car via Highway 560
2. The 'Porphyry Lake' Claims (independent of the Premet acquisition)
- These 28 claims cover 612 hectares and host breccia like those intersected at the Minto Mine which is located immediately to the west
- Wide near surface drill intercept in porphyry intrusives:
- 1.57 gpt Gold over 25.5 metres* in hole PL-3, and
- a separate high-grade intersection in PL-3 of 36.1 gpt Gold over 1.5 metres (DDH report by J.S. Walker, 4 July 1998)
3. The 'Tyrenite Mine Extension' Claims (independent of the Premet acquisition)
- 2 key claims which abut and form the extension of the Tyrenite Mine's mineralization
- Claims hold significant exploration potential as only shallow drilling has been completed and the property has not been tested to the same depths as the Tyrenite Mine
- Significant mineralized intersections:
- 6.23 gpt Gold over 1.83 metres, in hole 1316-40 (MNDM AFRI: 41P11NE0011)
- 3.53 gpt Gold over 3.66 metres, in hole 1316-41 (MNDM AFRI: 41P11NE0011)
Note on mineralized core intervals versus actual estimated mineralized widths: The Minto Zone is a near vertical breccia pipe and the drill holes referred to above are all steeply plunging and as such intersections are not true width. The exact geometry and hence the true width of the mineralized zones cannot be assuredly concluded at this time and therefore core lengths are reported.
Orefinders Shining Tree Consolidation
Orefinders views the Shining Tree District as a significantly underexplored and a not well understood region of Ontario's Abitibi which holds great potential for a district scale mining camp. Orefinders' Shining Tree consolidated land package now includes 67 claims, 14 patented leases covering over nearly 2,348 hectares and makes the Company a significant mineral landholder in the region.
Previous fragmented ownership of the properties which were owned by groups with limited access to capital for exploration and development has given rise to Orefinders opportunity to consolidate. With the acquisition of this consolidated land package Orefinders will now unify the extensive data which has been compiled on the various properties into a single cohesive model and can allocate the technical expertise and capital required to unlock the potential of its Shining Tree properties.
"The Orefinders team has been working on this complex transaction for some time now. It has involved numerous properties and multiple vendors to bring a fragmented area into a cohesive land package of which Orefinders now owns 100%. The core assets are all contiguous, gold focused properties, which have had a significant amount of work completed by previous owners. In addition to these core gold assets, we also acquired the Mann-Bartlett Mines which are former producing Cobalt / Silver Mines but not a current focus for Orefinders. Given the recent popularity of Cobalt metal, we've had significant interest to vend or join venture these assets," said Stephen Stewart, CEO of Orefinders. He continued, "With the Mirado Project and its Preliminary Economic Assessment expected to be completed very soon, we felt that combining these two groups of assets into a single vehicle would create further value for stakeholders. We think that the outstanding gold intersections we've seen on the former Minto Mine and Duggan Mine, together with the mining infrastructure in place on the Tyrenite property, create a value proposition for our shareholders and we are confident about the Company's future prospects."
Shining Tree Asset Presentation on Orefinders.ca
Given the extensive history and work completed including drill results and mine infrastructure on Orefinders Shining Tree properties the Company encourages investors to view our 'Shining Tree District Presentation' on Orefinders.ca.
Terms of the Acquisition
To acquire 100% of Premet shares and warrants, Orefinders will be issuing 22,759,246 shares and 3,412,987 warrants. To acquire 100% of interest in the Tyrenite Extension and the Porphyry Lake claims, Orefinders will be issuing 5 million shares from its treasury. All properties which Orefinders is acquiring are subject to existing and various legacy royalties. Closing of the acquisitions remains subject final approval of the TSX Venture Exchange, as well as certain other conditions as are customary in transactions of this nature.
Mirado's NI 43-101 Resource Estimation and PEA Update
Orefinders would also like to provide an update on the Mirado project. Progress continues on Mirado's updated Resource Calculation and the Preliminary Economic Assessment. Management has been advised by its independent consultant and author of the reports that the Company can expect initial results of the Preliminary Economic Assessment and Resource Calculation in January 2018.
Non-Arms Length Transaction
Alex Stewart owns 5.6% of the shares of Premet Inc. and in addition holds founders' warrants entitling him to acquire 1,592,727 shares of Premet. These founders' warrants will be exchanged for Orefinders warrants at the same exchange ratio as for the common shares. Alex Stewart has abstained from voting on the directors' resolution approving the acquisition of Premet Inc.
Information Regarding Historical Resources
All historical scientific and technical information relating to the Shining Tree Properties are based on and derived from the Technical Reports published and available on SEDAR, including the G.A. Harron, P.Eng. April 19, 2012 Technical Report on the Shining Tree Project; and the Michael V.W White MSc, P.Geo, March 23, 2010 Technical Report on Duggan, Tyrenite and Minto Properties; March 10, 2008 Report on the Duggan Property; April 25, 2008 Report on Rosko-Duggan Property; November 9, 2007 Report on the Duggan Property. We also referred to published news releases from Creso Exploration as well as references to the mineral deposit database (MDI) on the Ontario Ministry of Northern Development and Mines (MNDM) website. The reader is cautioned that Orefinders Inc. has not undertaken any independent investigation of the dimensions, quantity or grade of the gold mineralization referred to above, and has purchased these assets 'as is' and is relying upon previously publicly disclosed information as reported above. Orefinders intends to validate the historic drill data to the extent that it can be used in conjunction with any new subsequent drill data to be used in any new resource estimates. Orefinders Inc. views this historical data as a conceptual indication of the potential size and grade of the gold deposits in the area, and this data is relevant to ongoing exploration efforts. In view of when the resources were estimated and the differences in metal price and operating costs prevailing at the time compared to today, Orefinders Inc. does not treat any of the historical resources as Current mineral resources or mineral reserves.
The technical information contained in this news release has been reviewed and approved by Charles Beaudry, P.Geo, Director and Vice President Exploration for Orefinders, who is a Qualified Person as defined in "National Instrument 43-101, Standards of Disclosure for Mineral Projects."
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Orefinders' assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Orefinders. Additional information identifying risks and uncertainties is contained in filings by Orefinders with Canadian securities regulators, which filings are available under Orefinders' profile at www.sedar.com.
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SOURCE Orefinders Resources Inc.
For further information: To Speak to the Company directly, please contact: Stephen Stewart, Chief Executive Officer, Phone: 416.644.1567, Email: [email protected], www.orefinders.ca